Economies of scale are illustrated by:
A) a downward sloping long-run average cost curve.
B) a flat long-run average cost curve.
C) an upward-sloping long-run average cost curve.
D) a downward-sloping short-run average total cost curve.
A
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The adult population of a country is 200 million. Of this population, 120 million are employed and 20 million are unemployed. The labor-force participation rate in this country is _____
a. 50% b. 30% c. 70% d. 35%
A soda factory employs seven workers and produces 500 bottles of soda a day. The company reduces the workforce to six workers and output is now 450 bottles a day. The seventh worker:
A. had a lower marginal product than the sixth worker. B. caused average product to fall. C. had a marginal product of 50 bottles of soda. D. All of these are true.
To an economist, freeway congestion is a sign that the price to drive on the freeway is
A) below its equilibrium level. B) at its equilibrium level. C) above its equilibrium level. D) either a or c E) none of the above
New investors are not attracted to an industry and current ones are not exiting the industry if firms in the industry are
A. earning an accounting profit. B. earning an economic profit. C. breaking even. D. suffering an economic loss.